Results
Successful Appeal of Summary Judgment in Favor of Insurer
We successfully appealed a summary judgment in favor of an insurance client that had been sued by another insurance carrier for more than $1.6 million in damages arising out of a fire loss to an insured auto repair facility. The opposing insurance company had paid $1.6 million in damages and intended to pursue a product liability claim against a vehicle manufacturer, alleging a defectively manufactured vehicle had caused the fire. Our client insured the vehicle that was allegedly defective. After the insurance companies conducted a preliminary expert evaluation, the vehicle was destroyed by a salvage yard in the normal course of business. A claim was made against our client for promissory estoppel where it was alleged the vehicle was destroyed despite a promise to preserve. The Pennsylvania Superior Court affirmed the Court of Common Pleas of Erie County’s rejection of the claims against our client and agreed with our contention that the promissory estoppel claim was a disguised claim for negligent spoliation, which the Supreme Court of Pennsylvania does not recognize.
School District Prevails in Busing Dispute
We successfully defended a public school district that had been sued in federal court for not providing busing to charter schools within its district. The charter schools sought a temporary restraining order and a preliminary injunction to prevent the district from prioritizing busing to students attending traditional schools over those attending charter schools. The court agreed that the district was fairly maximizing its bus driver resources to service the most students possible.
Promissory Estoppel Claim Does Not Survive Summary Judgment
We obtained summary judgment for an insurance carrier client that had been sued by another insurance carrier for more than $1.6M in damages arising out of a fire loss. The opposing insurance company had paid $1.6M in damages and intended to pursue a product liability claim against a vehicle manufacturer, alleging that a defectively manufactured vehicle had caused the fire to an auto repair facility. Our client insured the vehicle that was allegedly defective. After the insurance companies conducted a preliminary expert evaluation, the vehicle was destroyed by a salvage yard in the normal course of business. A claim was made against our client for promissory estoppel where it was alleged that the vehicle was destroyed despite a promise to preserve. The Court of Common Pleas of Erie County rejected the claims against our client and agreed with our defense that the promissory estoppel claim was a disguised claim for negligent spoliation, which the Supreme Court of Pennsylvania does not recognize. Moreover, assuming such a cause of action could withstand summary judgment, the damages claimed were speculative in that without the vehicle it could never be proven that a manufacturing defect within the vehicle had caused the fire. Although the $1.6M damages were established, whether the insurance company could prove causation of damages was speculative and the promissory estoppel claim could not survive summary judgment.
Pension rights action dismissed.
We successfully handled a pension rights action before the Commonwealth Court on behalf of a municipality. A police chief in small municipality alleged that a scrivener’s error in his employment contract erroneously referencing Act 600 entitled him to an Act 600 pension plan upon retirement when his existing pension plan had been organized many years pursuant to Act 15. The police chief had never contributed to an Act 600 pension plan, which would have provided for much higher benefits and for which the municipality had no funds set aside to pay because it had never established an Act 600 plan. The Commonwealth Court held that the police chief’s pension rights existed only under Act 15 because the municipal pension ordinance was established under Act 15, not Act 600. Pennsylvania law requires an ordinance to establish pension rights. Pension rights cannot be conferred only by agreement, without an ordinance. This decision was very important to the municipality we represented, and the opinion affirms well-established law that a municipality cannot contract for benefits if there is no enabling law for the benefits.
